Correlation Between Simt Real and Calamos Timpani

Can any of the company-specific risk be diversified away by investing in both Simt Real and Calamos Timpani at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Simt Real and Calamos Timpani into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Simt Real Estate and Calamos Timpani Small, you can compare the effects of market volatilities on Simt Real and Calamos Timpani and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Simt Real with a short position of Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Calamos Timpani.

Diversification Opportunities for Simt Real and Calamos Timpani

0.47

Correlation Coefficient

Simt Real  Calamos Timpani

Very weak diversification

The 3 months correlation between Simt and Calamos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate and Calamos Timpani Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Small and Simt Real is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Simt Real Estate are associated (or correlated) with Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Small has no effect on the direction of Simt Real i.e., Simt Real and Calamos Timpani go up and down completely randomly.

Pair Corralation between Simt Real and Calamos Timpani

Assuming the 90 days horizon Simt Real Estate is expected to under-perform the Calamos Timpani. But the mutual fund apears to be less risky and, when comparing its historical volatility, Simt Real Estate is 1.84 times less risky than Calamos Timpani. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Calamos Timpani Small is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,428  in Calamos Timpani Small on September 12, 2024 and sell it today you would earn a total of  680.00  from holding Calamos Timpani Small or generate 19.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Simt Real Estate  vs.  Calamos Timpani Small

Simt Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Simt Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Simt Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Timpani Small

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Timpani Small are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unfluctuating forward indicators, Calamos Timpani showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simt Real and Calamos Timpani

The main advantage of trading using opposite Simt Real and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Calamos Timpani can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calamos Timpani will offset losses from the drop in Calamos Timpani's long position.

The idea behind Simt Real Estate and Calamos Timpani Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.